Naidu Seeks Rs 1.30 Lakh Crores For New AP Capital

Andhra Pradesh Chief Minister Nara Chandrababu Naidu has requested the Finance Commission to provide Rs 1.30 lakh crores for the construction of a new capital for the residuary State.

Addressing the meeting of the 14th Finance Commission in Tirupati on Friday, Naidu said that the amount should be given as a special grant to enable the State government to initiate the work on the capital project and complete it within a span of five years.

"We are without a capital, and the challenge is to create one and equip it on modern lines so that we are able to compete with the rest of the States on an equal footing. This calls for a massive effort. The State is in a structurally untenable position, which is not of its own making, and the creation of a capital calls for massive induction of resources. We would urge the Commission to recognise this as a special problem of the State requiring their attention and support," Naidu said.

Finance Commission Chairman Dr. Y V Reddy and members - Prof. Abhijit Sen, Sushma Nath, Dr. Govinda Rao and Dr. Mundle - and other officials of the Commission participated in the meeting.

"We are meeting at a time when our State has no capital and no infrastructure worth the name, and the institutions built over the last 60 years in Hyderabad are no longer available to the State. The State is forced to recreate them in its own territory. It is estimated that in the capital city of Hyderabad an amount of Rs. 1.40 lakh crores was invested by the Central Government, Rs. 5.89 lakh crores by the State Government and Rs. 6 lakh crores by the private sector. The State of Andhra Pradesh has not been provided commensurate compensation for the loss of these assets, and you can imagine the time, effort and cost involved in recreating these assets and facilities in a new location," Naidu complained in the beginnig of his speech.

The Chief Minister said that a more equitous and judicious division, particularly relating to public finances, would not have placed Andhra Pradesh in the position that it finds itself now.

"We look forward to generous support and assistance from the Finance Commission to address the concerns, undo the wrongs, and deliver justice to the people of Andhra Pradesh. The new State has to be built from scratch while simultaneously coping with a colossal deficit in the revenue account and basic infrastructure. We cannot be fitted into any predetermined pattern along with other States because of the adverse effects of the bifurcation of the State in the most unscientific manner. We request the Commission to keep this in view while considering any dispensation for the State. We believe that a special dispensation is required from you to enable us to cope with the adverse impact of the State's bifurcation," he pleaded.

Naidu also made several suggestions with regard to the distribution of resources between the Centre and the States, the need to transfer more resources to the States, the elimination of the criteria of Per Capita Distance altogether from the devolution formula, and other related subjects. (INN)